Gift Card Statistics & Trends 2026

Gift cards do not only come during the holiday season. They have become a strategic revenue driver for retailers worldwide. As we head into 2026, changing shopping habits and growing expectations around personalization and sustainability are reshaping how customers buy, use, and think about gift cards.

Understanding these statistics and trends early gives retailers a critical advantage to plan smarter campaigns and optimize customer experiences. This guide breaks down the key gift card trends shaping 2026 and what they mean for retailers preparing for the upcoming holiday season.

Gift Card Statistics

Market size and growth

• Global market: Expected to reach approximately $614.7 billion in 2025, with a growth rate of 8.5% (GlobeNewswire).
• U.S. market: Expected to grow by 7.9% in 2025 to reach $234.14 billion, according to Accio.
• Digital market: The digital gift card market grew from $323.31 billion in 2024 to an estimated $358.90 billion in 2025, notes a (Research and Markets report).

Why do people buy gift cards?

According to CashCard, there are more than one reasons that people want to purchase gift cards. Here are the popular reasons:

• Allow the recipient to select: 50.4%
• Easier and faster to buy: 24.7%
• No returning by recipients: 5.6%
• Easier to mail a gift card than a gift: 5.6%
• Stick to holiday budget: 5.2%
• Incentives for buying gift cards: 4.4%
• None of the above: 4.1%

Consumer behaviors

These following statistics highlight key shifts in how people spend,

• Consumers spend an average of 72% more and often more than the card’s value.
• Consumers are increasingly seeking personalized gift cards with features like custom messages, photos, and video greetings.
• Increased purchasing: In 2025, 81% of consumers purchased a gift card, which increased by 6% compared to the previous year, as reported by TSG Payments.

Security and fraud

Increasing awareness around security and fraud in the gift card market include:

• Gift card fraud is the most common form of fraud, affecting 34% of U.S. adults who are demanded to pay via gift card, according to Capital One Shopping.
• 23% of consumers have received a gift card with no funds, and 54% of those were denied a refund or credit (AARP).

Unused gift cards

Not all gift cards are used as intended, and consumer behavior after receiving a gift card can vary widely. The following statistics are what happens when gift cards go unused, resold, or regifted, and the common reasons reported by CapitalOneShopping behind these behaviors.

• Resale: About 9% of recipients have resold a gift card.
• Regifting: Approximately 24% of people admit to regifting a gift card.
• Reasons for not using: 3 most common reasons for unused cards include expiration (20%), losing the card (17%), and the business closing (12%)

Gift Card Trends 2026

Gift cards are quietly powering some of the smartest marketing strategies today. Let’s take a look at the gift card trends shaping how brands attract, convert, and retain customers, and how you can use them to level up your own campaigns.

1. Digital & Mobile preference

Digital gift cards are now the preferred choice for younger shoppers, with Millennials and Gen Z gravitating toward instant, digital delivery instead of physical cards. This shift is reinforced by the growing use of mobile wallets, where gift cards can be saved in apps like Apple Pay, Google Pay, or Samsung Pay, giving customers a simple and seamless way to purchase, send, and redeem them wherever they are.

Benefit for retailers: Reduces printing/logistics costs and expands your reach to remote or last-minute buyers.

During 2023 - 2024, Uber Eats reported that digital-only gift cards were growing faster than any physical gifting format, even though the brand offers both formats. The reasons might be cards purchased online and redeemed automatically in the app, so it is perfect for last-minute gifting and instant use. Besides that, Gen Z users prefer app-based gifting linked directly to their digital wallets.

2. Strategic spending & Loyalty integration

Many consumers now use gift cards alongside loyalty points as a smart way to manage their holiday spending and get more value from their budgets. When gift cards are connected to loyalty programs or subscriptions, they encourage repeat engagement, bring customers back more often, and help retailers build stronger, long-term relationships well beyond the holiday season.

Benefit for retailers: Encourages repeat visits, increases average order value, and strengthens loyalty ecosystems.

Target runs an annual holiday promotion where customers receive a bonus Target Circle reward - 10% off - when purchasing Target-branded gift cards. This approach boosts immediate revenue while securing future shopping trips from the same customer. Moreover, to enjoy this promo, buyers need to become a Target Circle member (free entry), which increases loyalty program membership registration at the same time.

3. Hyper-personalisation & Experiential gifting

Shoppers increasingly value personalized messages, designs, or curated experiences over generic dollar-value cards. Custom messages, unique designs, and experiences with AI-powered recommendations that suggest options like a “Weekend Getaway,” a “Couples Spa Retreat,” are becoming more popular than ever. Besides that, social media and influencer campaigns are playing a bigger role in spreading awareness and inspiring purchases, helping gift cards reach the right audience in a more engaging way.

Benefit for retailers: Creates memorable gifting experiences, enhances brand affinity, and encourages social sharing.

Nike sends personalized digital gift voucher recommendations based on user behavior (e.g., running shoes, training gear, Jordan fans). Shoppers can select designs, amount, and leave messages to the recipient. Also, there are 2 methods to deliver gift cards: via mail in a small shoe box, or via email for instant delivery. By doing this, the brand offers tailored connection with customers, showing their

4. Open value vs. Package-based cards

Open value cards, as they are flexible, letting senders select the value, and recipients choose products/services, remaining a consistent best-seller. However, some highly experiential and personal services such as spa and wellness services require a different approach: package & experience cards. They are created with predefined offers (e.g., signature treatments, event tickets) for gifting memorable experiences.

Benefit for retailers: Catering to both preferences maximizes sales potential and meets diverse customer needs.

For Milk & Honey Spa, this approach works because it shifts the focus from price to experience. Instead of purchasing a fixed dollar amount, customers feel like they are giving relaxation, self-care, and a sense of luxury. A clearly defined offer such as a “Signature Package” naturally feels more premium and thoughtful than a generic value, even when the price is similar. At the same time, it creates strong upsell opportunities at redemption, as recipients often choose to add extra time or upgrade products during their visit.

5. Early Shopping & Extended Season

Holiday shopping now begins much earlier than it used to, with many customers purchasing gift cards well before October as a way to prepare ahead of the peak season. Instead of being redeemed immediately, these gift cards are often used later, as recipients continue shopping and searching for deals throughout December and even into January.

Benefit for retailers: Extends seasonal revenue, captures both early and late buyers.

Airbnb promoted its gift cards in certain countries, where they positioned them as early planning tools for future travel. The benefits are that recipients can redeem anytime, as the gift vouchers never expire. It ensures that early shoppers secure meaningful gifts without choosing dates or destinations, and recipients are not stressed about redeeming it before expiration. It is the separation of purchase and redemption that extended revenue impact.

6. Redemption on Essentials

Some consumers focus gift card usage on essentials, like groceries or household products. As these are what they use day-to-day, they tend to use it now or later, especially after the holiday season, increasing its practical value. For consumers, it is a convenient way to offset regular expenses and manage budgets more effectively.

Benefit for retailers: Encourages repeat visits and steady revenue flow post-holidays.

Instacart, a quick-commerce platform, saw a strong trend where gift cards were redeemed for everyday essentials: groceries, household items, baby products. Gift vouchers were seamlessly applied at checkout, often paired with subscriptions or recurring orders. As they are essential items, they became a driver of repeat weekly orders, not just one-time redemptions. Many users continued shopping even after the gift card balance was exhausted.

7. Sustainability and eco-consciousness

Sustainability and eco-consciousness are increasingly shaping how people choose gifts. As more consumers prioritize environmentally responsible options, retailers are responding with eco-friendly alternatives such as biodegradable physical gift cards and packaging made from recycled materials. Moreover, digital gift cards are gaining popularity because they naturally reduce plastic use and physical waste, making them a practical and greener choice for modern gifting.

Benefit for retailers: Meet eco-conscious expectations while preserving the appeal of physical gifting. Sustainability-driven design can turn gift cards into a brand statement, not just a payment method.

Lush, a well-known cosmetics retailer that emphasizes fresh, handmade products, introduced plastic-free, biodegradable gift cards made from recycled or natural materials such as cardboard and plant-based fibers. These physical gift cards were paired with minimal, recycled packaging, avoiding plastic sleeves and unnecessary inserts.

In-store and online messaging clearly highlighted the environmental benefits of these choices, positioning the gift cards as a more responsible alternative without compromising the gifting experience.

The bottom line

From early shopping habits and extended redemption cycles to digital-first experiences, loyalty integration, and sustainability choices, consumer expectations are evolving rapidly. They can become a powerful tool for driving conversions, increasing average order value, and building long-term customer relationships.

Retailers who understand these trends and prepare to create gift vouchers in Magento 2 ahead of the holiday season can maximize holiday revenue while setting the foundation for continued growth into the new year.